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SANTA FE PACIFIC CORPORATION REPORTS 50 PERCENT INCREASE IN SECOND QUARTER EARNINGS PER SHARE

 HIGHLIGHTS
 Second Quarter 1993
 OVERALL RESULTS
 -- Adjusted net income of $39.2 million up 48% from $26.5 million
 in 1992
 -- $0.21 earnings per share up 50% from $0.14 per share in 1992
 -- Net non-cash gain of $108.3 million or $0.58 per share a
 result of coal and aggregate for gold assets exchange
 -- Net income of $147.5 million including asset exchange gain
 -- California lines sale final closing completed for $60 million
 RAILWAY RESULTS
 -- Operating income of $82.1 million up 26% from $65.4 million in
 1992
 -- Traffic volumes up 12% due to new automotive and coal business
 and continued intermodal growth
 -- Operating ratio improves to 86.5% from 88.1%
 MINERALS RESULTS (excluding exchange of assets)
 -- Operating income of $17.6 million up 25% from $14.1 million in
 1992
 -- 88,000 gold ounces sold up 21% from 73,000 ounces in 1992,
 substantially offset by higher production costs of $252 per
 ounce vs $212 in 1992
 -- Exploration and administrative expenses below last year
 PIPELINE AND OTHER RESULTS
 -- Pipeline Partners operating income of $8.9 million up 7% from
 8.3 million in 1992
 -- Interest expense of $36.0 million decreases 21% from $45.8
 million in 1992
 -- Other income-net decreases 8.9 million due to reduced interest
 and real estate income.
 SCHAUMBURG, Ill., July 21 -- Santa Fe Pacific Corporation (SFP) reported second quarter net income, excluding an asset exchange gain, of $39.2 million or $0.21 per share, a significant improvement over the $26.5 million or $0.14 per share in 1992, which has been restated to reflect additional expenses related to an accounting change adopted in the first quarter of 1992. Including the asset exchange gain, net income for the quarter was $147.5 million or $0.79 per share.
 "Improved operating results at each of our businesses and lower interest expense are responsible for the overall improvement," said Robert D. Krebs, chairman, president and chief executive officer. "Santa Fe Railway increased carloadings 12% and benefitted from continued operating efficiencies which allowed it to achieve year over year gains in operating income, excluding special items, for the tenth consecutive quarter."
 Late in the second quarter of 1993, SFP completed a previously announced asset exchange with Hanson Natural Resources Company, an affiliate of Hanson PLC. In this exchange, SFP received two gold mines and other gold assets in exchange for essentially all of its coal and aggregate assets. SFP recognized an after tax, non-cash gain of $108.3 million or $0.58 per share on this exchange, representing the excess of the fair value of the gold assets received over the carrying value of the coal and aggregate assets, after deducting taxes and other expenses of the exchange. This makes Santa Fe Pacific Gold, formerly Santa Fe Pacific Minerals, one of the largest gold producers in North America. "This exchange will more than double annual gold production, significantly increase reserves and provide important operating efficiencies," said Krebs.


RAILWAY RESULTS
 Railway reported operating income of $82.1 million, a 26% improvement over the second quarter of 1992. The quarterly operating ratio improved to 86.5% from 88.1% last year. The prior year period included a two-day work stoppage associated with a labor dispute in June.
 Revenues of $609.1 million increased 11% resulting from a 12% growth in carloadings partially offset by a slight decline in average revenue per car. Intermodal shipments increased 10% reflecting continued strength in direct marketing and international business. Carload shipments increased 13% reflecting growth in automotive, grain and coal. A new long-term contract with General Motors in the Arizona and southern California corridors was the principal reason for the automotive growth. The coal increase includes traffic resulting from Wisconsin Electric's long-term purchase agreement with the Pittsburg & Midway coal mine located near Raton, New Mexico.
 Quarterly operating expenses for Santa Fe Railway of $527.0 million increased 9%. Compensation and benefits expense of $204.1 million increased 3% as the effect of the reduced crew agreement reached in September 1992 with the United Transportation Union on the eastern half of the railroad and other operating efficiencies helped to offset volume increases and inflation.
 Fuel expense of $59.6 million increased $11.5 million reflecting a volume driven consumption increase, 8% higher prices and reduced fuel usage during the 1992 work stoppage. Equipment rents of $53.0 million increased $8.9 million due to higher business volumes. Materials and supplies expense of $35.2 million increased $4.5 million reflecting higher maintenance activity on freight cars. Other expenses of $128.3 million increased $9.9 million primarily due to increased business volumes.


MINERALS RESULTS
 Minerals' quarterly operating income of $17.6 million increased 25% over last year principally due to lower exploration activities pending completion of the Hanson transaction and lower administrative expenses. Gold sales increased 15,000 ounces to 88,000 ounces with sale price per ounce essentially even. The gold revenue increase was offset by higher production expenses.


PIPELINE RESULTS
 SFP's equity investment in Santa Fe Pacific Pipeline Partners, L.P., produced operating income of $8.9 million, a $0.6 million increase over the second quarter of 1992. This improvement is the result of increased volumes and rates.


INTEREST EXPENSE AND OTHER INCOME
 Interest expense of $36.0 million declined $9.8 million due principally to lower outstanding debt levels. Other income-net decreased $8.9 million reflecting reduced interest income and lower real estate income.


1993 YEAR TO DATE RESULTS
 For the six months ended June 30, 1993, SFP reported net income of $77.1 million or $0.41 per share compared to $54.7 million or $0.29 per share in 1992, excluding special items in both years. The significantly improved 1993 performance is due to higher operating income related to traffic growth and cost efficiency measures at Railway. Lower interest expense also favorably affected net income, while other income-net declined due to lower interest and real estate income.
 Including special items, SFP reported net income of $274.6 million or $1.47 per share for the six months ended June 30, 1993 compared to a loss of $108.3 million or $0.59 per share in 1992. Special items in 1993 include the gain on the mineral asset exchange and an after tax gain of $89.2 million or $0.48 per share recorded in the first quarter from the sale of rail lines in southern California to various transit agencies. Also, during the first quarter of 1992, a net charge of $163.0 million or $0.88 per share was taken for the adoption of a new accounting method for health and life insurance and disability benefits for retired and inactive employees.
 SANTA FE PACIFIC CORP.
 SUPPLEMENTAL DATA
 (UNAUDITED)
 Three Months Six Months
 Ended June 30, Ended June 30,
 RAIL 1993 1992 1993 1992
 Operating expenses (in millions)
 Compensation and benefits $ 204.1 $ 198.3 $ 405.0 $ 403.8
 Fuel 59.6 48.1 118.8 97.2
 Equipment rents 53.0 44.1 104.7 84.9
 Depreciation and amortization 46.8 45.0 92.8 90.0
 Materials and supplies 35.2 30.7 64.2 65.7
 Other 128.3 118.4 253.5 230.3
 Total operating expenses $ 527.0 $ 484.6 $1,039.0 $ 971.9
 Operating ratio 86.5% 88.1% 87.1 88.7
 Revenue ton-miles (billions) 23.4 20.9 45.9 41.7
 Revenue per revenue
 ton mile (cents) 2.57 2.58 2.56 2.57
 Carloadings (thousands) 445.8 397.2 880.7 800.2
 Average revenue per car $ 1,346 $ 1,354 $ 1,332 $ 1,340
 Employees (period-end) 14,397 14,612 14,397 14,612
 MINERALS
 GOLD
 Ounces produced (thousands) 83 74 152 165
 Ounces sold (thousands) 88 73 141 137
 Average sales price
 (per ounce) $384.70 $385.01 $389.18 $391.56
 Average production cost
 (per ounce) $251.63 $212.29 $252.03 $207.22
 Average cash production cost
 (per ounce) $176.11 $154.73 $178.73 $150.30
 Coal tons sold (thousands) 812 713 1,898 1,654
 Coal average price (per ton) $ 21.53 $ 22.40 $ 21.65 $ 22.42
 Employees (period-end) 1,426 928 1,426 928
 SANTA FE PACIFIC CORP.
 CONDENSED BALANCE SHEET
 (Unaudited, in millions)
 June 30, Dec. 31,
 ASSETS 1993 1992
 Cash and cash equivalents $ 94.3 $ 100.1
 Other current assets 480.0 437.5
 Total current assets 574.3 537.6
 Properties and other assets 5,195.5 4,807.8
 Total assets $5,769.8 $5,345.4
 LIABILITIES AND STOCKHOLDERS EQUITY
 Current liabilities $ 929.5 $ 942.0
 Long-term debt due after one year 1,142.6 1,245.7
 Other liabilities 2,488.3 2,229.2
 Stockholders' equity 1,209.4 928.5
 Total liabilities and
 stockholders' equity $5,769.8 $5,345.4
 CONDENSED STATEMENT OF Three Months Six Months
 CASH FLOWS Ended June 30, Ended June 30,
 1993 1992 1993 1992
 Cash provided by operations $ 66.4 $ 68.6 $ 107.3 $ 121.5
 Cash used for capital
 expenditures (109.6) (89.1) (180.0) (127.5)
 Proceeds from sale of property,
 plant and equipment 63.0 26.1 231.5 31.0
 Net repayment of borrowings (7.9) (58.4) (199.3) (126.4)
 Cash provided by (used for)
 other activities (6.4) (4.5) 34.7 41.3
 Increase (decrease) in cash
 and cash equivalents $ 5.5 $ (57.3) $ (5.8) $ (60.1)
 SANTA FE PACIFIC CORP.
 CONSOLIDATED STATEMENT OF OPERATIONS
 (Unaudited, in millions, except per share data)
 Three Months Six Months
 Ended June 30, Ended June 30,
 REVENUES 1993 1992 1993 1992
 Rail $ 609.1 $ 550.0 $1,192.3 $1,095.1
 Minerals 57.0 47.1 121.4 113.0
 Pipeline 8.9 8.3 14.6 14.0
 Total revenues 675.0 605.4 1,328.3 1,222.1
 OPERATING INCOME
 Rail 82.1 65.4 153.3 123.2
 Minerals 17.6 14.1 46.2 46.9
 Pipeline 8.9 8.3 14.6 14.0
 Total operating income 108.6 87.8 214.1 184.1
 Other income (expense)-net (8.2) 0.7 (13.3) (2.3)
 Gain on sale of California lines -- -- 145.4 --
 Gain on exchange of mineral
 assets 217.5 -- 217.5 --
 Interest expense 36.0 45.8 74.6 93.7
 Income before income taxes 281.9 42.7 489.1 88.1
 Income tax 134.4 16.2 214.5 33.4
 Income before cumulative effect
 of a change in accounting 147.5 26.5 274.6 54.7
 Cumulative effect of a change
 in accounting for postretirement
 and postemployment benefits,
 net of income taxes -- -- -- (163.0)
 Net income (loss) $147.5 $ 26.5 $ 274.6 $ (108.3)
 INCOME (LOSS) PER SHARE OF COMMON STOCK
 Before cumulative effect of
 a change in accounting $ 0.79 $ 0.14 $ 1.47 $ 0.29
 Cumulative effect of a change
 in accounting -- -- -- (0.88)
 Net income (loss) per share $ 0.79 $ 0.14 $ 1.47 $ (0.59)
 Average number of common
 and common equivalent shares 186.6 184.7 186.3 184.7
 -0- 7/21/93
 /CONTACT: Catherine Westphal of Santa Fe Railway, 708-995-6273/
 (SFX)


CO: Santa Fe Pacific Corporation ST: Illinois IN: TRN SU: ERN

DH -- NY021 -- 3833 07/21/93 10:00 EDT
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Date:Jul 21, 1993
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